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    Hypothesis Testing: The Various Steps

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    Prottoy
    The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

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    Hypothesis Testing: The Various Steps

    Uploaded by

    Prottoy
    21 views27 pages
    The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

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    Module-3_-Lesson-2

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    The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views27 pages

    Hypothesis Testing: The Various Steps

    Uploaded by

    Prottoy
    The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 27

    Hypothesis Testing the various steps

    Hypothesis Testing the various steps


    Hypothesis Testing the various steps
    Hypothesis Testing the various steps
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis


    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0:


    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0:


    Alternate Hypothesis HA:
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200


    Alternate Hypothesis HA: µ ≠ 200
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200


    Alternate Hypothesis HA: µ ≠ 200
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200 Two tailed


    Alternate Hypothesis HA: µ ≠ 200 test
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200 Two tailed


    Alternate Hypothesis HA: µ ≠ 200 test
    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200 Two tailed


    Alternate Hypothesis HA: µ ≠ 200 test

    Step 2 : Calculate the t-statistic


    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200 Two tailed


    Alternate Hypothesis HA: µ ≠ 200 test

    Step 2 : Calculate the t-statistic


    Hypothesis Testing the various steps

    Step 1 : Formulate Hypothesis

    Null Hypothesis H0: µ = 200 Two tailed


    Alternate Hypothesis HA: µ ≠ 200 test

    Step 2 : Calculate the t-statistic

    Sample mean 199 way above 200 t-statistic -3.9528 way above 0
    Sample mean 199 way below 200 t-statistic -3.9528 way below 0
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.

    tn-1 distribution

    α/2 probability α/2 probability


    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.

    t-cutoff = +/- |T.INV(α/2, n-1)|


    tn-1 distribution

    α/2 probability α/2 probability


    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.

    t-cutoff = +/- |T.INV(α/2, n-1)|


    tn-1 distribution
    = +/- |T.INV(0.05/2, 10-1)|
    = +/- 2.622

    α/2 probability α/2 probability


    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    α : The ‘significance’ level. Typically, = 0.05 or 0.01
    The probability of rejecting the Null hypothesis when it is true.

    t-cutoff = +/- |T.INV(α/2, n-1)|


    tn-1 distribution
    = +/- |T.INV(0.05/2, 10-1)|
    = +/- 2.622

    α/2 probability α/2 probability

    -2.622 +2.622
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    Step 4 : Check whether t-statistic falls in the rejection region

    tn-1 distribution

    -2.622 +2.622
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    Step 4 : Check whether t-statistic falls in the rejection region

    tn-1 distribution

    t-statistic = -3.9528

    -2.622 +2.622
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    Step 4 : Check whether t-statistic falls in the rejection region

    tn-1 distribution Conclusion:


     We reject the Null hypothesis

    t-statistic = -3.9528

    -2.622 +2.622
    Hypothesis Testing the various steps
    Step 1 : Formulate Hypothesis
    Step 2 : Calculate the t-statistic
    Step 3 : Cutoff values for the t-statistic
    Step 4 : Check whether t-statistic falls in the rejection region

    tn-1 distribution Conclusion:


     We reject the Null hypothesis
     Our evidence is not consistent
    with the claim made
    t-statistic = -3.9528

    -2.622 +2.622

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